Watcha enters court receivership following major investor's legal filing

Watcha, Korea’s homegrown streaming platform, has entered court receivership after the Seoul Bankruptcy Court approved a corporate rehabilitation filing led by one of its major investors.

Logo of Watcha, Korea's homegrown streaming platform [WATCHA]

Watcha, Korea’s homegrown streaming platform, has entered court receivership after the Seoul Bankruptcy Court approved a corporate rehabilitation filing led by one of its major investors.

The court’s division for rehabilitation officially initiated the process at 2 p.m. Monday, legal sources confirmed on Wednesday.

The application for court receivership was filed on July 8 by one of Watcha’s key investors, Enlight Ventures. The court had already issued a comprehensive stay order and preservation measures on July 24, temporarily protecting Watcha’s assets and halting creditor actions.

Under the court’s order, Watcha must submit a list of its rehabilitation creditors, secured creditors and shareholders by Sept. 1. Claims related to the restructuring can be filed until Sept. 22.

The company is required to present its rehabilitation plan by Jan. 7, 2026, which the court will then review before deciding whether to approve it.

The court did not appoint an external administrator and instead named Watcha CEO and co-founder Park Tae-hoon as the company’s supervisor.

Watcha launched in 2010 as a film and content recommendation platform under the name Watchapedia, and expanded into the video-on-demand business in 2016.

The company reported 73.4 billion won ($52.8 million) in revenue in 2022, reflecting steady growth. However, prolonged financial difficulties in recent years have pushed it toward rehabilitation proceedings.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY JEONG JAE-HONG [kim.juyeon2@joongang.co.kr]